Gold Set for Longest Winning Run in 2 Months on Obama Win

Gold declined for the first time in three days as a stronger dollar crimped demand for the precious metal as an alternative investment.

The dollar gained as much as 0.4 percent against a basket of six currencies on concern that President Barack Obama will struggle to convince Congress to avert the so-called fiscal cliff after his re-election. European Central Bank President Mario Draghi said the region’s crisis is affecting Germany. The Standard & Poor’s GSCI Spot Index of 24 commodities slumped as much as 2.6 percent

“We are seeing a risk-off day today,” Donald Selkin, the New York-based chief market strategist at National Securities Corp., which manages about $3 billion of assets, said in a telephone interview. “There is a sell-off across the board.”

Gold futures for December delivery slid 0.1 percent to settle at $1,714 an ounce at 1:53 p.m. on the Comex in New York. Earlier, prices touched $1,733, the highest for a most-active contract since Oct. 19.

Silver futures for December delivery declined 1.2 percent to $31.661 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for January delivery fell 1.2 percent to close at $1,539.50 an ounce. Palladium futures for December delivery slipped 1.6 percent to $610.35 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.